CMCC Global, one of Asia’s first venture capital companies, recently introduced its Liberty Bitcoin Fund, a single-asset passive tracker of bitcoin offering services of buying and safekeeping coins, with an eye to providing crypto currency access to accredited investors in Asia.
The new fund is really a demand-driven meaning investors can buy bitcoin. Three funds launched by CMCC Global focused on investments in proprietary technical infrastructure. More funding has been created because of the funds from high net worth individuals, family offices assets and institutional investors over time. The three fund’s amounts are consequently $1 million, $3.5 million and $30 million.
There has also the investment from Japanese messaging app line. These fund uses ANXONE, enshrined with insured wallets, custody provided by BC Group.
Rising of Demand of Digital Asset Class
Digital currencies have become a comfortable scope to investment because of gaining recognition, being included in mutual funds and ETFs, slow subsiding of volatility. Mutual funds can easily own crypto because of it is being perceived as a legitimate investment in portfolios. Purchasing of mutual funds will be easy to those who don’t want to open accounts for digital assets. They can do it through their brokerage accounts and maintain all of their assets in one place.
There is a diversification benefit of adding crypto to already diversified portfolios. But volatility of bitcoin is very high which is a problem and detrimental to portfolio returns. Investors in the Asia Pacific region are willing to invest across portfolio returns.
There is a possibility of growing assets under management in the Asia-Pacific management from $15.1 trillion in 2017 to $16.9 trillion in 2020 and then approximately double to $29.6 trillion by 2025.
Narrow Entrance in Asia
Investment from Asia to crypto is very narrow. CMCC wants to ensure digital asset management services in Asia for being equivalent with Grayscale in the U.S. To accomplish the goal of CMCC, it is launching its Liberty Bitcoin Fund.
What they are doing according to demand of investors who want to have a regulatory outfit in the case of their investment as like as Grayscale in New York. They also want to bring the methodology of basic services like auditing and fund administration, which they hardly found at the time of their investment because a professional care includes auditors, licensed fund administrators. A professional custodian is also required indeed.